European Power Market

June 9, 2017

The research team gives its view on the European Power Market


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June 5, 2017 

  • During the past few weeks, total power generation has been rather stable. Looking at the energy mix, the nuclear share has been gradually increasing.
  • An abrupt increase in renewables output will characterize the current week’s scenario as wind is forecasted to substantially increase over western and northern Europe.
  • A strong jet-stream typically means volatile temperatures over western (and to some extent) central Europe. A cold air advection (mid-week) will be followed by anti-cyclonic conditions and a net increase in surface temperatures.
  • The strong westerlies will also lead to a likely decrease in utilization of generation capacity (fossil fuels) – this is another bearish driver.
  • The only bullish development is associated with the predicted (daily) power demand, which is set to raise during the next 5-7 days.
  • The macroeconomic conditions remain strongly supportive of a bullish price development.
  • The PMI is currently above 59 (May data). The industrial production remains in positive territory (March data).
  • The chemical and cement production have been pointing downward and upward, respectively (May data).